Middle Income Multi-Family Housing Innovations
The most notable trends and innovations around multi-family housing development in the United States include co-living housing, apartments with more bedrooms, more fitness areas, affordable luxuries, technology and connectivity, e-commerce delivery rooms and lockers, and apartments that allow home sharing. In many ways, the different mindset and increasing millenial population is driving innovation and new house development. Some of their more popular preferences include fitness, yoga, building new connections, and having affordable luxuries. Companies like Amazon and Airbnb have started developing products to accomodate millennials' housing needs better. I was also able to locate 2 articles on what apartments of the future may look like inside.
An exhaustive search of corporate websites, market reports, white papers and trusted media sites showed a variety of trends and innovations related to multi-family housing development in the US. Findings on renter demographics on multi-family housing showed that the requested information is not publicly disclosed for the specific demographic of $42,000. Since the average income of Millennials - identified as those driving growth in this sector - is just over $35,000, we selected that as our base, even though it was slightly below the target income. To ensure that we performed due diligence, we also looked at trends for multi-family units available for those with annual salaries up to $50,000. In this way, we ensured the trends applied to both the lower and upper limits of your target income.
Co-living is becoming an increasingly popular trend for multi-family housing. According to a recent survey by IKEA, co-living is becoming an increasingly popular way for city-dwellers to become social. For millennials specifically, sharing some space with strangers is becoming a more acceptable paradigm for city dwellers looking for connections. Unfortunately, according to the survey, companies are having trouble figuring out "the right balance between an economically feasible scale and a scale that favors human connections." As co-living is becoming increasingly more acceptable, companies are working to meet the demands of consumers, but are still struggling to deliver a product focused on creating connections.
APARTMENTS WITH MORE BEDROOMS
Many apartments throughout the United States are only meant to accommodate one to two people. With an aging millenial population and a declining rate of home ownership, a large portion of millennials are raising families in apartments. The majority of the millennial population, over 50%, lives in a studio or a one-bedroom apartment, yet over 83% of them have children, making it a high possibility that these millennial couples would soon move out in search of a bigger and more suitable apartment. Apartment developers are building to accommodate the need for more space, thus creating blueprints with more bedrooms.
MORE FITNESS AND OTHER COMMON AREAS
A study conducted by Kingsley Associates and the National Multifamily Housing Council found that the following amenities were of great importance in multi-family dwellings: "fitness centers, outdoor recreational facilities, barbecue grill areas and community WiFi." Milennials are more self-concious when it comes to their physique and are looking for places that can accommodate their needs. Moreover, according to a report conducted by the Pew Research Center, tend to be more spiritual than religious. In fact, "27% of millennials attend religious services on a weekly basis but more than half focus on spirituality at least once a week and nearly three-quarters focus on gratitude at least once a week". As such, yoga studios are of increased interest and an innovative trend that is appealing to middle-class Americans living in apartment homes.
With the increasing pressure of debt and the inability for middle-class families to pay it out, it has been reported that it is highly unlikely that middle class families would invest in single-family homes. In fact, home ownership in the category under 35 years old has fallen from 43% to 35% in 2015, with the main reason being the inability to afford a mortgage. This has made multi-family renting a better fit for millennial families. The catch is that millennials prefer apartments/buildings that offer high-end conveniences. Because of that, affordable luxuries are becoming a popular new and exciting trend in apartment living. These include security guards, in-suite washer/dryers, dishwashers, smart controls for HVAC systems, pet washing stations, dog parks, electric car charging stations and recycling services.
CONNECTIVITY AND TECHNOLOGY
According to a recent report by Keybank connectivity and new technology attracts millenials to apartment living "Millenials want the highest connection and they want to be constantly connected", so it is important that "buildings that are completely wired for these things."
In a recent survey by Schlage and Wakefield Research on U.S. multifamily renters, "86% of millennials say they are willing to pay one-fifth more for a smart apartment. Gen Y renters are 61% more likely to rent a unit because of electronic access such as keyless entry, and 55% are willing to pay more in rent for a unit with a smart lock."
E- COMMERECE DELIVERY ROOMS AND LOCKERS
Millennials are avid e-commerce shoppers and the convenience of picking their packages in a more secure and fast way has always been of importance to them. HSBH reported that "nearly half of millennials receive online packages at least three times per month on average and more than half are interested in having package lockers installed in their buildings". Responding to that trend, last July, Amazon announced its new apartment locker service called "The Hub." These lockers allow apartment dwellers access via a pickup code and allow for more privacy. Landlords are adapting to the increased use of Amazon Prime and some building managers are "even opting to include commercial-grade refrigerators in janitors' closets, or utility rooms in order to accommodate the growing trend of grocery and food delivery."
Due to the increased debt payments, millennials are turning more and more towards sharing and renting. As such, apartment complexes are projected to allow home-sharing. In fact, Airbnb has announced a project, called 'Niido powered by AIrbnb', that is aimed at providing multi-family homes to anyone that needs it. The first apartment is set to open this year in Kissimmee, Florida and is "designed specifically with home-sharing in mind." These new apartments will "include features like keyless entry and secure storage options for tenants who are renting out their units."
I have also provided you with two articles that I thought might be of interest on futuristic apartments below:
To wrap things up, I have provided you with seven different innovative trends in middle-class multi-family housing including co-living housing, apartments with more bedrooms, more fitness areas, affordable luxuries, technology and connectivity, e-commerce delivery rooms and lockers, and apartments that allow home sharing. The biggest driver behind the new development of innovative homes was identified to be millennial families. Several companies, such as Amazon and Airbnb, have already started introducing and developing new products aimed at making the millennial living experience better.